Slide 1: FY11 Fourth Quarter Earnings Call
FY11 Fourth Quarter Earnings Call November 17, 2011 November 2011
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations, New Business and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice Pr
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information, which is summarized in the appendix. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma informa
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly Hi hl engineered i d aerospace components t Significant Si ifi t aftermarket ft k t content t t Proprietary and sole source products High free cash flow Proprietary Pro Forma Pro Forma EBITDA Revenues Revenues⁽¹⁾ As Defined (1) Based o
Slide 6: Financial Performance by Market Channel
Financial Performance by Market Channel Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ vs. Prior Year Commercial OEM Q4 YTD Airbus & Boeing production rate increases Biz Jet OEM – full year revenue up 25% Commercial OEM: Up 22% Up 16% Commercial Aftermarket: Commercial Revenues sequen
Slide 7: Fiscal 2012 Outlook
Fiscal 2012 Outlook FY 2012 FY 2011 Pro forma Sales Mix⁽¹⁾ Market Expected Growth⁽¹⁾ 31% C Commercial i l OEM U Mid Teen Up T % 42% Commercial Aftermarket Up ≈ 10 % 27% Defense Down Low Single Digit % Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4 to 5% Revenues $ 1,4
Slide 8: Fourth Quarter 2011 Results
Fourth Quarter 2011 Results ($ in millions) Q4 FY11 Q4 FY10 Revenue $343.0 $223.1 53.7% Increase ● Organic sales growth 13 13.7% 7% Gross Profit $193.0 $132.4 3 Margin Point Decrease Margin % 56.3% 59.3% ● Dilutive acquisition mix of 3 margin points, about half due to acquisition-related q costs. SG
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash FY 9/30/2011 FY 9/30/10 Net Cash Provided by Operating Activities $260.6 $197.3 Taxes Capital Expenditures ($18.0) ($12.9) FY11 ETR: 33.6% Free Cash Flow $242 6 $242.6 $184 4 $184.4 Cash on the Balance Sheet $376.2 $234.1 Liquidity EBITDA As Defined FY 9/30/2
Slide 10: Appendix
TRANSDIGIVI GROUP INC. Be Appendix
Slide 11: Reconciliation of EBITDA and EBITDA As Defined to Net Income
Reconciliation of EBITDA and EBITDA As Defined to Net Income Thirteen Week Periods Ended Fiscal Years Ended September September September September 30, 30, 30, 30, 2011 2010 2011 2010 Net income $ 67,395 $ 50,635 $ 172,134 $ 163,445 Less income (loss) from discontinued operations 3,082 - 19,909 - In
Slide 12: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2011 2010 2011 2010 Net income from continuing operations $ 64,313 $ 50,635 $ 152,225 $ 163,445 Less: dividends paid on pa
Slide 13: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Fiscal Years Ended September 30, September 30, 2011 2010 Net Cash Provided byy Operating p g Activities $ 260,578 , $ 197,304 , Adjustments: Changes in assets and liabilities, net of effects from acquisitions
Slide 14: FY11 Fourth Quarter Earnings Call
FY11 Fourth Quarter Earnings Call November 17, 2011 13 November 2011